Patience 'the key' to trading in China

Steve Simms (left) has been building Tomizone's business in China for two years. Tomizone's mascot (right). Photos / Brett Phibbs

China's growing number of technology-savvy consumers provides a real opportunity for New Zealand technology companies prepared to work hard and take their time getting deals done.

The New Zealand Trade Commissioner and Consul-General in Beijing, Pat English, said there were no low-hanging fruit in China, just a tough, competitive market.

"It's not about the usual stories that you hear. There is nothing easy about China. [Technology companies] have to work extremely hard and make a real commitment to this industry to get it done," he said.

English said people were still hearing the China myths - big opportunities, cheap labour and low margins.

"China is changing but what we're being told about China isn't," he said.

English is back in New Zealand talking to technology companies about the opportunities in China and putting together a trade mission to go there in October.

"Missions allow them to get access to people we could never get without a minister," English said.

Focusing on communications and geospatial technology, New Zealand Trade and Enterprise is looking to target New Zealand companies with products and services designed for six areas: healthcare IT, GPS, mobile communications equipment, network optimisation, smartphones and operating systems and wireless LAN and LAN networks.

English said New Zealand companies could get products in the door of China's technology giants such as Huawei.

"Huawei has two primary criteria for buying equipment and they are you're either the top 1, 2 or 3 per cent of the world suppliers or you're the leading edge technology.

"New Zealand primarily falls into the second category but New Zealand's got some very smart technology out there that delivers solutions," English said.

The numbers out of China are big - 380 million internet users, 220 million bloggers, 230 mobile phone internet users, 1.5 billion phone users, 276 million mobile phone users who sent 592 billion texts last year.

Local wi-fi technology specialists Tomizone have been in China for two years.

Chief executive Steve Simms said in that time the company had made good progress, but patience was key.

"Don't look at the numbers. Just focus on what you're trying to do for the customer and the numbers will come," he said.

English said the main Chinese players were looking at services and technology to give them the competitive edge.

He said New Zealand companies in the Chinese market were able to offer a unique product or service.

"New Zealanders tend to be very solution conscious. You look at Tomizone, you look at Mobile Mentor, they're not ordinary companies, ordinary people, they're go-getters," English said.

Simms said some Chinese technology companies were on the hunt for great ideas, not necessarily great technology.

"They've got all the technology in the world. They build stuff, they make stuff," he said. "But what they need is the creative ideas to make that technology work."

His advice was to get on a plane, study the local environment and not run too hard. "Be very patient."